Wednesday, February 21, 2024

Tenants pay 10% more despite rent decline

commercial tenants

According to HomeLet Rental Index data, rents in many regions have dropped from October to November

Tenants are now paying around 10 per cent more in rent despite the UK average rental price declining by 0.3 per cent.

According to HomeLet Rental Index data, rents in many regions have dropped from October to November.

And that, tenants are paying out hundreds of pounds more each month compared to this time in 2022.

The average UK tenant can now expect to pay £1,279 per month for their rent, a staggering £221 more every month than what the post-pandemic rental market offered in December 2021.

Across the UK average monthly rent is up just below 9 per cent (8.85 per cent) compared to the end of 2022.

The data shows that as rising prices fail to match wage increases for many, tenants in the country are paying around a third (33.2 per cent) of their wages on rent. This is 2.1 per cent higher compared to 2022.

The average rent in the UK dropped month on month from October by -0.3 per cent and now stands at £1,279pcm or £2,174pcm in London.

There was a negative variance for most regions in the country excluding Wales, West Midlands, and the East of England. These regions saw a mean average +0.5 per cent monthly rise.

HomeLet said its data give a stark view into the reality of the cost-of-living crisis in the UK.

HomeLet & Let Alliance chief executive Andy Halstead said: Despite huge annual rise, our November data actually reports a decline in monthly rent prices across most regions compared to October. Rent is down -0.3 per cent across the UK from last month and as much as -3.2 per cent in Scotland, which also saw a decline last month.

Halstead said: I hope this is a sign of more positive movement in the market on the horizon, as soaring costs are beneficial for neither landlord nor tenant; and we strive to support both. Particularly for landlords with mortgages, the outlook is bleak for some time to come.

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